So many astute investors buy art, especially now in times of crisis and inflation, but what are the reasons for these purchases? The fine art market continues to grow. It seems like every day, another auction record is set for "the highest price ever paid". What does this mean for the paint you bought to decorate your home? It can increase your value. So, but how? Well, as with any investment, you need to research and go beyond your comfort zone. The art market is fickle and there are no guarantees of profitability, but with a little work, you can fill your home with works of art that can become valuable assets in the future. Consider these tips for choosing a piece of art for your home.
All this extraordinary art market activity raises a simple question: “Is art a good investment”? Of course, the simplistic answer is, "It depends on how much you invest in it." As Andy Augenblick, President of Emigrant Bank Fine Art Finance, points out: “People tend to think that the art market in general is either up or down, but just like individual stocks, the price performance of artworks varies considerably. from genre to genre and from artist to artist”. The art market, in fact, consists of thousands of submarkets, and there is really no equivalent to a stock index investment. Thus, art as an investment is difficult to compare to other asset classes. So what's the reason behind so many astute investors buying more art?
1.Art can be used to diversify a portfolio, including assets that do not necessarily move up and down with the financial markets.
2.Art tends to retain its value over time.
3. Works of art tend to value significantly.
4. Inflation Coverage, in addition to coverage against stock market volatility.
5. Art property tax benefits.